In times of market uncertainty, following Warren Buffett’s advice to “be greedy when others are fearful” can be a profitable strategy. Here are seven stocks that present buying opportunities on every dip, as highlighted by Ian Cooper.
1. Nvidia (NVDA):
Opportunity: Weakness in Nvidia’s stock is seen as an opportunity, especially with significant catalysts ahead.
Recent Performance: After a pullback from $500 to $405 due to a broader market decline, Nvidia is considered oversold on various technical indicators.
Earnings: Nvidia reported strong earnings, with adjusted EPS exceeding expectations at $2.70, and revenue jumping 101% YoY to $13.5 billion.
2. Occidental Petroleum (OXY):
Buffett’s Endorsement: Warren Buffett’s Berkshire Hathaway increased its stake in Occidental Petroleum, signaling confidence in the stock.
Recent Purchase: Berkshire Hathaway bought an additional 3.9 million shares, bringing its stake to 25.8%, worth about $14.5 billion.
Potential Increase: Buffett has regulatory approval to own up to 50% of the company, indicating a potential future increase in stake.
3. MicroStrategy (MSTR):
Bitcoin Correlation: MicroStrategy’s stock is closely tied to the price of Bitcoin, making it a potential gainer as Bitcoin rises.
Bitcoin Holdings: MicroStrategy owns about $4.68 billion worth of Bitcoin, and its stock value is influenced by the cryptocurrency’s performance.
Potential Gain: With Bitcoin at $34,700, MicroStrategy is seen as a stock that could test $500 again in the near term.
4. Take-Two Interactive (TTWO):
GTA VI Release: Anticipation for the release of Grand Theft Auto VI is a key driver for Take-Two Interactive.
Expected Sales: Analysts predict at least $1 billion in sales at launch, with around 25 million copies expected to be sold initially.
Future Growth: The company aims for over $8 billion in net bookings and over $1 billion in adjusted unrestricted operating cash flow in fiscal 2025.
5. Amazon (AMZN):
Holiday Sales: With online holiday sales expected to reach $228.1 billion and e-commerce sales estimated to rise between 10.3% and 12.8%, Amazon is poised for growth.
Analyst Ratings: Several analysts have raised their price targets on Amazon following solid earnings performance.
AWS Optimism: Despite slightly missing expectations, Amazon Web Services (AWS) is optimistic about generative artificial intelligence driving revenue.
6. Agree Realty (ADC):
Real Estate Investment Trust (REIT): Agree Realty is a beaten-down REIT trading at a 52-week low, providing a yield of 5.46%.
Tenant Profile: High-grade tenants include AutoZone, Costco, Home Depot, Target, and McDonald’s, making it less susceptible to recession.
Insider Buying: Insiders, including board members and executives, have been buying shares, indicating confidence in the company.
7. Technology Select Sector SPDR Fund (XLK):
Diversification Option: Consider diversifying with the XLK ETF, tracking the Technology Select Sector Index, especially with the growth potential in AI and machine learning.
Expense Ratio: The ETF has a low expense ratio of 0.10%.
Technical Indicators: XLK ETF appears oversold on RSI, MACD, and Williams’ %R, suggesting a potential rebound.
Predictions and Data:
Nvidia (NVDA):
Metric
Value
Current Stock Price
$405
52-Week High
$500
Earnings per Share (EPS)
$2.70
Revenue (YoY growth)
$13.5B (101%)
Catalysts Ahead
Significant, retesting $500
Occidental Petroleum (OXY):
Metric
Value
Current Stock Price
TBD
Berkshire Stake
25.8%
Recent Purchase
3.9M shares
Future Potential
Regulatory approval for up to 50% stake
MicroStrategy (MSTR):
Metric
Value
Current Stock Price
$406.76
Bitcoin Holdings
$4.68B
Potential Gain
Retesting $500 with Bitcoin rally
Take-Two Interactive (TTWO):
Metric
Value
Expected GTA VI Sales
$1B+ at launch
Fiscal 2025 Targets
$8B+ in net bookings, $1B+ in cash flow
Amazon (AMZN):
Metric
Value
Online Holiday Sales
$228.1B (4.8% YoY)
Analyst Price Targets
Raised by multiple analysts
AWS Optimism
Generative AI potential revenue boost
Agree Realty (ADC):
Metric
Value
Current Yield
5.46%
Insider Buying
Yes
Tenant Profile
Stable, less susceptible to recession
Technology Select Sector SPDR Fund (XLK):
Metric
Value
Expense Ratio
0.10%
Technical Indicators
Oversold on RSI, MACD, Williams’ %R
Potential Rebound
Expected after oversold conditions
Frequently Asked Questions (FAQ):
Q1: Why are these stocks recommended for buying on every dip?
A1: These stocks are considered solid investments with strong growth prospects. Buying on dips takes advantage of market fluctuations, following Warren Buffett’s strategy.
Q2: How are Bitcoin and MicroStrategy connected?
A2: MicroStrategy’s stock is closely correlated with the price of Bitcoin as the company holds a significant amount of Bitcoin, making it a proxy for Bitcoin investments.
Q3: What makes Agree Realty attractive?
A3: Agree Realty is a beaten-down REIT with a stable tenant profile, offering a high yield. Insider buying indicates confidence in its long-term potential.
Q4: Why consider an ETF like XLK?
A4: XLK provides diversification in the technology sector at a low cost. It tracks the Technology Select Sector Index and is seen as a potential rebound candidate.
Disclaimer: The information provided is for informational purposes only and does not constitute investment advice. Perform your own research before making investment decisions.
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